Capital Market Question: Download Capital Market PDF

Promoters in the unlisted companies contribute at most 20% of post-issue capital. Promoters also help in shareholding which offers for sale and it shouldn't be less than 20%. In the unlisted companies also securities which are issued to promoters at a low price which is lower than the equity gets offered to public and it doesn't remain eligible for promoters contribution. Contribution of the promoters are considered by post-issue capital where the promoter contributes through some optional convertible security and it is also been there to public.